January 29, 2025
President Trump demanded the federal reserve cut interest rates.
Today – they did not.
Instead the federal reserve chairman – appointed by trump said this.
And because they are – as you just heard –in no hurry — today – the federal reserve decided to keep interest rates steady at four-and-a-quarter to four and a half percent. This comes after the fed cut interest rates by a full percentage point over their last three meetings in 2024.
Before I tell you more about why the fed made this decision today and what the future of your interest rates will be and what trump’s role will be in that — I want to thank my Substack subscribers for voting for this story as the bonus this week. I do not accept story requests from anyone. Except from my paid subscribers. They are the only ones who get a say in the stories I cover. So if you want to join them make sure you become a paid subscriber on my FactsHQ Substack.
Ok – so why did the federal reserve decide to keep rates steady. Well – because of the data. The federal reserve has two goals– one they need to keep prices stable and two they need to ensure maximum employment. And while both are headed in the right direction – neither are there yet
But there’s a wild card in the mix. A new president. The fed chairman said it’s not uncommon to have uncertainty in the economy when a new president comes into office and starts enacting new policies. But with trump – while chairman Powell did not call him out by name – he certainly listed all the trump policies that could impact whether your interest rates will go up or down in the future.
Regardless of the realities of the Trump policies – chairman Powell says no president will tell the federal reserve what to do with interest rates.
Watch the Fed Chairman’s briefing here.
